Intel issues margin warning – memory hurts

CHIP GIANT Intel said it won’t make as much gross margin as it wanted to in its first financial quarter, because the price of flash memory continues to slump.
The prices of both flash and DRAM have shown signs of eroding away to nothing over the last year, with even the big players – the Dramurai – hurting from the falls.
Intel (tick:INTC) lowered its margin forecast to about 54 per cent, down from the 56 per cent it had expected.
Still, the world+dog would die for gross margins like that, and sales of its CPUs haven’t been affected, it said in a statement.